Mobile phone and employment

Mainly three functions of the mobile phone are utilized in developing countries: (i) voice, (ii) SMS, and (iii) mobile application. Through combining these functions, mobile phones have been used to collect data, provide information and services, and act as an intermediary platform to solve issues in different sectors. In regards with an employment issue, due to a coordination and information failure between the demand and supply side of the labor market, even those who are qualified and received training and education have not been able to get a job. While the demand for employment exists both in the formal and informal sectors, access to this information is limited to those who have a strong social network and references or have access to a job portal on the Internet. As a potential solution for equalizing information asymmetry, the mobile phone can act as an intermediary to connect job providers with job seekers. This paper explores six business models (Pakistan Urban Link and Support (PULS), Konbit, Babajob, Assured Labor, LabourNet, and Souktel) from the Middle East, Latin America and South Asia solving existing coordination and information failure in the labor market. Phone interviews were conducted with each organization to collect primary data in October and November 2011.